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Debit/Credit memo

Former Member
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I am confused whenever i come across the term Debit/credit.... here in MM point of view where we use this Debit memo and credit memo..

I am new to this pls tell me the following steps how to do that debit/credit memo..

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Answers (5)

Answers (5)

Former Member

Hi,

Before you know about credit & debit, you need to know about Asset and liabilities.

Because based on these two factors we have to talk about credit/debit .

Generally Debit means "plus (increase)"and credit means "minus (decrease)"

take Asset that means your stock.

debit your stock A/C means your asset value has been increased (ex., when make a GR)

here you have to listen and think where did the debited value has taken? probably it sholud be from vendor as per the above ex,.

So we already manintained the vendor A/C that is liability A/C. in this A/c the above debited value has to be creditted (decreased)

reards,

Sathes

kunal_ingale
Active Contributor
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Hi

The process for Debit/ credit memo is similar to invoicing in MIRO, just need to select debit or credit memo option while doing MIRO rather then invoice.

In debit memo our account will be debited and in credit memo our account credit , this will be simplest explanation.

means to pay extra amount to vendor you can use Debit memo and to reverse credit memo.

Former Member
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Hi

DEBIT MEMO

The Debit Memo process is used for applying a debit to a customer account once a determination has been made that a customer has been undercharged as a result of a pricing or sales tax rate error. A Debit Memo Request is then created with the amount to be Debited, and placed on a billing block for review. It must then be released to become billing relevant, and appear on the billing due list. Periodic billing process creates a Debit memo to be sent to the customer, and posts an accounting document.

.CREDIT MEMO

You post a credit memo if too large an amout has been invoiced ,the total invoice quantity in the p.o history is reduced by the credit memo quantity

A transaction that reduces Amounts Receivable from a customer is a credit memo. For eg. The customer could return damaged goods. A debit memo is a transaction that reduces Amounts Payable to a vendor because, you send damaged goods back to your vendor.

Credit memo request is a sales document used in complaints processing to request a credit memo for a customer. If the price calculated for the customer is too high, for example, because the wrong scale prices were used or a discount was forgotten, you can create a credit memo request. The credit memo request is blocked for further processing so that it can be checked. If the request is approved, you can remove the block. The system uses the credit memo request to create a credit memo.

Thanks

Former Member
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Hi,

Credit memo:

Following is a Scenario:

Created PO for 10 pieces 10 rs each i.e total Po value of Rs.100

GR done for 10 pieces and so stock account affected to Rs.100

IV also done with respect to GR

Now after IV, if you find that 1 piece out of 10 is defective or less in qty then you can raise raise a credit memo for 1 piece @ Rs.10/- which will be done through MIRO by selecting Credit Memo which in turn will debit vendor account with 10 rs.

Debit Memo:

When you create a PO the material value is Rs10.

But when you receive the material the price is increased.

And you done MIRO for the PO price.

So, to balance the price increase you have to do debit memo thro MIRO again.

Now the vendor account will be credited.

BijayKumarBarik
Active Contributor
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Hi,

From MM point of view credit memo refers to a credit memo from the vendor and posting a credit memo always leads to a debit posting on the vendor account. you can find invoice,credit memo, Subsequent Debit & Subsequent Credit in MIRO t.code.

For more check linkS:

http://help.sap.com/saphelp_46c/helpdata/en/a8/b998b7452b11d189430000e829fbbd/content.htm

http://e-mory.blogspot.com/2007/07/sap-difference-of-credit-memo.html

Regards,

Biju K